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A performance improvement plan (PIP) can feel intimidating for both managers and employees alike. However, when used well, it’s one of the best employee management tools you have in your arsenal. Instead of jumping straight to termination, setting out a structured performance improvement plan gives people a fair chance to improve, while also protecting your business and creating a documented pathway forward.
Read on to find out what is a performance improvement plan, when to use one, how long it should run, what happens if an employee refuses and how HumanX HR can help you implement the most effective PIPs for your organisation.
What Is A Performance Improvement Plan?
A performance improvement plan is a formal, written agreement between an employer and an employee that explicitly outlines where employee performance is not meeting expectations and what needs to change. The overall aim of a PIP is not to ‘catch people out’, but rather to give structure and clarity, as well as support, so they have a realistic opportunity to do better.
A solid performance improvement plan template should include the following:
- A summary of the performance concerns or behavioural issues.
- Measurable objectives (i.e. explain what ‘good’ performance looks like).
- Timelines for improvement (e.g. one month or the next quarterly review).
- The support the business will give, such as training or mentoring.
- Check-in dates and how employee performance management will be tracked moving forward.
- Possible outcomes at the end of the plan (e.g. improvement, extension, further action, etc.).
Most important of all is that a PIP should be fair and fully transparent. Your employee should understand exactly what is expected of them and have a genuine opportunity to succeed. When you treat performance improvement plans as tools for growth instead of a punishment, they can rebuild trust and help you retain good people who are just struggling right now.
When To Use A Performance Improvement Plan
The circumstances in which a performance improvement plan is most appropriate are when informal feedback and coaching haven’t been able to resolve your concerns, and performance still isn’t at the required level. A few triggers might include:
- Constantly missing deadlines or recurring quality issues.
- Ongoing behavioural concerns (e.g. poor communication, conflict, not following ingrained processes).
- A pattern of customer complaints or poor internal feedback.
- A promotion or role change where the employee is struggling to meet the new standards.
Before turning to a PIP, make sure you double-check that expectations for your staff member were clear, that their training was reasonable and that there are no underlying issues like health or interpersonal conflicts that also need to be addressed.
This is where human resources come into play. HR can help you determine whether a performance improvement plan is the right next step. They’ll be able to make sure the process is procedurally fair, as well as reduce the risk of claims related to unfair or wrongful termination. For many organisations, partnering with an external HR team like HumanX helps keep this process completely objective.
If you don’t have an internal HR function, outsourced HR support can guide you from the initial conversation through to documentation, meetings, reviews and follow-up.
What Are the Benefits of Using a Performance Improvement Plan?
When done well, a performance improvement plan can offer plenty of benefits for both the business and the employee.
1. Better performance and staff retention
Some employees want to do well but just don’t understand your expectations or haven’t had the proper training. A performance improvement plan gives them a roadmap. When they succeed, you don’t have to deal with the cost and disruption of replacing them.
2. Fairness and transparency
PIPs bring structure to your employee performance management process. They help ensure all decisions are based on facts, not feelings, and that employees are treated the same across the entire business. Ultimately, it reinforces a culture of fairness and accountability – something our HR consulting services can also help with.
3. Less legal and reputational risk
If their employment does end, a documented performance improvement plan template shows that you gave them warnings, support and a reasonable timeframe in which to improve. In the end, this can help mitigate the risk of disputes around the process. It also demonstrates that your business acted responsibly.
4. Stronger leadership and culture
Leaders who are confident using employee management tools – including PIPs – are better equipped to have honest conversations and set boundaries. Over time, this lifts standards and reiterates that underperformance will be handled constructively, not ignored.
How Long Should a Performance Improvement Plan Be?
There is no ‘right’ length of time for a performance improvement plan. The timing should always be contextual and linked to the type of improvement you’re after. As a general guide though:
- 4 weeks: Might be enough for small issues, like punctuality or following set procedures.
- 6–8 weeks: More realistic when the change demands new skills (e.g. learning new systems or adjusting to a more senior role).
- 12 weeks or more: May be appropriate in complex roles where performance is measured over longer cycles, such as sales or project delivery.
Whatever timeline you settle on, be consistent. The objectives in the performance improvement plan need to be achievable within that period and managers must commit to regular check-ins. Launching a PIP and then failing to give any feedback until the end is unrealistic and unfair.
HR support – whether that’s internal or with employee relations specialists – can help you set realistic timelines and lock in review stages so that both parties know exactly how progress will be assessed.
Employee Refusal
It’s not uncommon for an employee to feel anxious or even defensive when presented with a performance improvement plan. It makes sense – they might be worrying that it’s just one step away from termination.
Can An Employee Refuse To Agree To A PIP?
While they can certainly raise concerns or disagree with aspects of the PIP, you should give the employee a reasonable opportunity to respond and suggest adjustments. It’s all part of implementing a fair process.
Refusing to participate outright doesn’t make the performance improvement plan disappear. If an employee refuses to sign, you can note their refusal on the document and continue with the process, so long as you have followed fair and reasonable procedures.
What To Do If An Employee Refuses To Engage In The PIP
If the employee won’t engage with the plan whatsoever, you can:
- Re-explain its purpose. Emphasise that the PIP is meant to support their improvement rather than punish them.
- Invite them to bring a support person to meetings.
- Ask what would help them feel more comfortable participating.
If, after this, they still refuse to engage or make no genuine effort to improve, you might need to move to the next stage of your employee performance management process. At this point, it’s wise to seek professional HR advice so your actions are compliant and defensible.
You’ll find plenty of online guidance and examples in our HR resources and blog, which cover topics like dealing with underperformance and how to handle difficult conversations.
Conclusion
As you can see, a performance improvement plan is one of the most powerful tools you have to support employee performance and protect your business culture. It also gives underperforming employees a structured chance to improve while recording the steps you’ve taken as their employer.
At HumanX HR, we work with mid- to large-sized businesses to develop people-centric performance improvement plan templates, coach leaders on how to run PIP meetings and make sure your processes line up with best-practice HR expectations.
Whether you need ad-hoc advice or fully outsourced HR support, our HR consulting team can help you spark confident performance conversations while creating a workplace where people know what’s expected and are given every opportunity to succeed.
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